Govt issues notice to Ola, Uber over pricing differences on iPhones and Android

The issue gained traction when social media posts revealed how users experienced Apple vs Android pricing, where rides from iPhone handsets were priced significantly higher than those from Android phones for the same journey

The Centre has issued notices to ride-hailing giants Ola and Uber, following consumer complaints that the platforms were charging different prices for the same rides when booked through iPhones and Android devices. The government notices to Ola and Uber were sent by the Central Consumer Protection Authority (CCPA), which operates under the Ministry of Consumer Affairs and regulates unfair trade practices, including issues like the Ola pricing that has sparked controversy.

Differential pricing and consumer complaints

Union Minister of Consumer Affairs, Pralhad Joshi, confirmed on January 23 that the Ola Uber legal notice had been issued after several users reported price variation on Apple and Android devices. Consumers claimed that the Ola Uber price difference was particularly noticeable when booking rides from premium mobile devices like iPhones, which appeared to charge higher fares compared to bookings made from standard Android phones. Joshi stated that the Indian govt action on apps comes in response to the increasing concern about potential unfair pricing practices affecting consumers.

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The issue gained traction when social media posts revealed how users experienced Apple vs Android pricing, where rides from iPhone handsets were priced significantly higher than those from Android phones for the same journey. Joshi referred to the practice as an "apparent differential pricing," calling it a possible violation of consumer rights and warning the companies that such practices would not be tolerated.

Ola and Uber defend pricing practices

In their defence, Uber addressed the claims on social media, stating that pricing variations stemmed from factors like different pick-up locations, estimated time of arrival (ETA), and drop-off points, which influenced fare calculations. The company emphasized that it did not customize trip pricing based on the mobile device used. However, the Ola pricing issue has raised questions about the fairness of the pricing structure on these platforms, prompting the government to investigate further.

The CCPA, established in 2020 under the Consumer Protection Act, is responsible for safeguarding consumer rights and regulating businesses engaged in deceptive practices. With this action, the Indian government is reinforcing its commitment to protecting consumers in the rapidly growing digital services sector.

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